Learn more about the Business Case Approach online
You can learn more about the Business Case Approach (BCA) through our interactive online BCA essentials learning module. This module includes activities to help you get started with the BCA.
The Waka Kotahi Business Case Approach (BCA) is a robust, principles-based approach for developing business cases for investment through the National Land Transport Programme (NLTP). It is based on the same five-case model as New Zealand Treasury’s Better Business Cases.
Treasury’s Better Business Cases(external link)
Applying the principles of the BCA helps to ensure that business cases are developed in a fit-for-purpose way that demonstrates value for money.
In particular, the BCA supports:
It helps business case writers develop robust proposals for investment by:
As a principles-based approach, the BCA involves very few strict requirements. However, there are three critical steps that are required when developing a business case. What changes from one business case to another is the level of detail needed to complete each step.
The three critical steps are:
These three steps form the basis of every business case. They are developed a step at a time, using the five-case model as a framework.
Within each critical step there are a number of key actions.
Critical step | Five case model | Key actions |
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The case for change |
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Optioneering |
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Refining the preferred option
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For more information on establishing the case for change, read our detailed guidance on the strategic case.
For more information on optioneering, read our detailed guidance on the economic case.
For more information on refining the preferred option, read our detailed guidance on the commercial, financial, and management cases.
Commercial case
Financial case
Management case
Underpinning the BCA are the following key principles.
Investments are made to obtain benefits. An investment should contribute to the organisation’s strategic outcomes, represent value for money, and deliver benefits for customers.
The intention driving an investment must be clear. Simple concepts and plain language will provide a clear understanding of the problems and benefits.
The level of effort required to develop a business case must be proportionate to the complexity, risk and uncertainty of the problem and the proposed investment.
For more information about matching your level of effort to the level of complexity, risk and uncertainty, see our page on right-sizing
Right-sizing your business case
Successful investment management relies on gathering information through facilitated discussion with appropriate stakeholders who have the most knowledge of a subject.
The BCA relies on a structured, sequential approach to decision making, checking each phase as you go. All investments must follow the same line of enquiry.
These key principles apply to all investment proposals, as required under the Business Case Policy.
These key principles are supported by other more specific principles that you will find from time to time as you go through the BCA. For example, we have identified a set of principles that guide how engagement should be used throughout development of a business case.
Engagement and the Business Case Approach
For a deeper into our principles-based approach, you can read the following practice note.
The BCA breaks down the work that needs to be done for a robust business case into phases, which means the case can be built up progressively, and decisions about whether to proceed can be made at regular checkpoints.
Rather than being a rigid procedure to be followed from point A to B to C, the BCA phases are a way of grouping the critical thinking that needs to happen and the decisions that need to be made to progress the business case. The aim is to complete each case in the five-case model, to the extent appropriate to your business case.
Depending on the complexity of the problem/investment, you may not need to go through all phases, or you may be able to group them together. However you approach the business case, you will need to complete the three critical steps outlined above.
The phases are:
Find out more about the phases and when you would undertake them in our guidance.
The roles and responsibilities of people involved in the BCA vary as the business case progresses through different phases. The main roles across the whole process are:
It is important to talk to us throughout the development of your business case. Contact your Waka Kotahi investment advisor or email the Business Case Process team at businesscaseprocess@nzta.govt.nz